02/23/2018 09:00 AM Senate FINANCE

HOUSE BILL NO. 287(brf sup maj fld)                                                                                           
     "An Act making appropriations  for public education and                                                                    
     transportation  of  students;   and  providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
9:13:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PAUL SEATON, SPONSOR, offered a brief                                                                            
history on the genesis of the legislation.                                                                                      
                                                                                                                                
9:15:54 AM                                                                                                                    
                                                                                                                                
Representative Seaton discussed the presentation, "HB 287                                                                       
Pupil Transportation and Education: An Early and Stand-                                                                         
alone Appropriation Bill" (copy on file).                                                                                       
                                                                                                                                
Representative Seaton highlighted Slide 2, "HB 287-                                                                             
Comparison":                                                                                                                    
                                                                                                                                
     HB 287 - As Introduced                                                                                                   
                                                                                                                                
     Section  1 -  Appropriates  $50,853,100 for  Foundation                                                                  
     Program,  Boarding  Home  Grans,  Youth  in  Detention,                                                                    
     Special Schools, and Mt. Edgecumbe Boarding school.                                                                        
                                                                                                                                
     Section 2 - Sets out funding by agency.                                                                                  
                                                                                                                                
     Section  3 -  Sets  out funding  for appropriations  in                                                                  
     Section 1.                                                                                                                 
                                                                                                                                
     Section 4  - Appropriates  $1.2 billion  of CBR  to the                                                                  
     public education fund.  Appropriates an estimated $67.8                                                                    
     million from the SBR for student transportation.                                                                           
                                                                                                                                
     HB 287 - As passed by the house                                                                                          
                                                                                                                                
     Section 1 - Unchanged                                                                                                    
                                                                                                                                
     Section 2 - Unchanged                                                                                                    
                                                                                                                                
     Section 3 - Unchanged                                                                                                    
                                                                                                                                
     Section  4 -  $1.2 billion  of CBR  funding is  removed                                                                  
     from the bill.                                                                                                             
                                                                                                                                
     Without the CBR funding, the "estimated to be" of SBR                                                                      
     funding now needed for student transportation is $78.2                                                                     
     million.                                                                                                                   
                                                                                                                                
9:17:07 AM                                                                                                                    
                                                                                                                                
Representative Seaton  displayed Slide  3, "HB 287  - Intent                                                                    
of the bill":                                                                                                                   
                                                                                                                                
      • Stand-alone education appropriations bill.                                                                              
                                                                                                                                
        • Allow school districts to know their level of                                                                         
          state aid in advance of passage of the state                                                                          
          operating budget.                                                                                                     
                                                                                                                                
        • Avoid unnecessary teacher layoff notices.                                                                             
                                                                                                                                
        • Same level of funding as the Governor's request.                                                                      
                                                                                                                                
        • Use $1.2 billion from CBR and about $67.8 million                                                                     
          from SBR.                                                                                                             
                                                                                                                                
9:17:52 AM                                                                                                                    
                                                                                                                                
Representative  Seaton  addressed  Slide  4,  "K-12  Funding                                                                    
History  - All  Funds (FY15-19).  The slide  depicted a  bar                                                                    
graph  that listed  the  funding for  K-12,  broken down  by                                                                    
Mount Edgecumbe Boarding  School Facilities Maintenance, Mt.                                                                    
Edgecumbe  Boarding   School,  Special  Schools,   Youth  in                                                                    
Detention,  Boarding  Home   Grants,  Additional  Foundation                                                                    
Funding, Pupil Transportation, and Foundation Program.                                                                          
                                                                                                                                
9:18:49 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon noted  that the green chunk  on the first                                                                    
bar for  the FY 15  final budget was not  additional funding                                                                    
but  was one-time  money that  had been  distributed through                                                                    
the formula to create an equitable spread.                                                                                      
                                                                                                                                
Representative Seaton agreed.                                                                                                   
                                                                                                                                
9:19:57 AM                                                                                                                    
                                                                                                                                
Representative  Seaton  highlighted  Slide  5,  "End-of-Year                                                                    
Savings Balances  - FY 15-19.  The slide showed a  bar graph                                                                    
that end-of-year  savings balances for the  Statutory Budget                                                                    
Reserve and the Constitutional Budget Reserve (CBR).                                                                            
                                                                                                                                
9:20:45 AM                                                                                                                    
                                                                                                                                
Representative   Seaton   addressed   Slide   6,   "Earnings                                                                    
Comparisons  - CBR  and Permanent  Fund." The  slide offered                                                                    
earnings comparisons  of the  FY 17 earning  of the  CBR and                                                                    
the 10-year earning projection of the Permanent Fund.                                                                           
                                                                                                                                
9:21:27 AM                                                                                                                    
                                                                                                                                
Representative   Seaton  discussed   Slide  7,   "Effect  of                                                                    
Earnings  Rate  on  $1.2 Billion."  The  slide  reflected  a                                                                    
difference of $632  million in 10 years between  the CBR and                                                                    
the Permanent Fund.                                                                                                             
                                                                                                                                
9:21:58 AM                                                                                                                    
                                                                                                                                
Representative Seaton looked at Slide 8:                                                                                        
                                                                                                                                
     Education is one of the highest priority programs for                                                                      
     the   state   and    educators   are   shaping   future                                                                    
     generations.                                                                                                               
                                                                                                                                
     HB 287 reflects the importance of education to our                                                                         
     state.                                                                                                                     
                                                                                                                                
9:22:22 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman said that  discussions about education were                                                                    
always  heated  and  that   every  legislator  claimed  that                                                                    
education was  a top priority.  He said that the  bill would                                                                    
be discussed during caucus.                                                                                                     
                                                                                                                                
9:22:54 AM                                                                                                                    
                                                                                                                                
Senator Stevens queried the dangers  of a live appropriation                                                                    
bill between the House and the Senate.                                                                                          
                                                                                                                                
Representative Seaton  said that it would  take agreement by                                                                    
both bodies to pass something.                                                                                                  
                                                                                                                                
9:24:09 AM                                                                                                                    
                                                                                                                                
Senator Micciche  hoped that the  legislature could  work to                                                                    
make Alaskans  feel more secure  in the financial  health of                                                                    
the state.                                                                                                                      
                                                                                                                                
9:25:11 AM                                                                                                                    
                                                                                                                                
Representative  Seaton stated  that he  was willing  to work                                                                    
with other  funding sources  for the bill  and was  eager to                                                                    
work with the Senate on a successful piece of legislation.                                                                      
                                                                                                                                
9:26:08 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  noted that  there was an  assertion that                                                                    
$1 billion in  the CBR was adequate, which  she believed was                                                                    
debatable. She hoped  that a funding source  could be agreed                                                                    
upon  by both  bodies. She  believed  that a  draw from  the                                                                    
earnings  account should  not  happen  without a  structured                                                                    
draw.                                                                                                                           
                                                                                                                                
9:28:39 AM                                                                                                                    
                                                                                                                                
Vice-Chair   Bishop    expressed   appreciation    for   the                                                                    
legislation.                                                                                                                    
                                                                                                                                
9:28:56 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman discussed housekeeping.                                                                                        
                                                                                                                                
HB 287(brf sup maj fld) was  HEARD and HELD in committee for                                                                    
further consideration.